Hello and welcome to an overview of the New York Paid Family Leave Law. We know you’re busy and we appreciate you taking the time to learn about this new law going into effect for your associates. 1
Starting January 1, 2018, all associates working in the state of New York will be provided paid and job protected time away from work under the new Paid Family Leave Law. Associates will be able to use this new paid family leave for things such as bonding with a new child after placement or birth, caring for a family member with a serious health condition; or preparing for a family member’s military service, all of which we will discuss further. As with other leave of absences, Associates will work with Sedgwick to request and manage the leave. 2
The benefits of the new law will be phased in over the next few years. For the first year, associates will be able to take up to 8 weeks of paid family leave with a weekly benefit of 50% of the their average weekly wage. For years two and three they will have 10 weeks, and for year four and beyond associates will be able to take up to 12 weeks. The time can be taken within any given 52 week period with the clock starting the first day an associate takes a Paid Family Leave. The new Paid Family Leave will be combined with the New York statutory for a maximum benefit of 26 weeks. Both the New York Disability and new Paid Family Leave will be administered by Liberty. 3
So now you know basics of the new Family Paid Leave law, how does it work? How can associates use the time? Associates will be allowed to use Family Paid Leave in one day increments. There will be a limit of 60 days per year for associates working at least 5 days a week. Taken in one day increments, the Paid Family Leave annual limit is equal to the average number of days per week an associate works for each of the weeks allowed by the law. In other words, if an associate works, on average, 3 days a week, then the maximum number of days available during the first year would be 5 days times 8 weeks, or 24 days. As we said earlier, the benefits will increase over the next few years, finally capping out at 12 weeks, or 36 days in our example, in year four. 4
Just as the maximum allowable time will increase up to year four, the payment percentage will also increase. For the first year, associates will be paid 50% of their weekly wages. For year two, 55%, year three 60%, and finally year four and beyond, 67%. There is a maximum benefit payment allowed which is based on the New York State Average Weekly Wage. Currently the New York State Average Weekly Wage is $1,305.92. For year one the maximum weekly benefit payment would be 50% of this state average or $652.96. So, for the first year of the law, 2018, an associate will not be paid more than $652.96 per week of Family Paid Leave. In other words, if an associate’s average weekly wage is $2,000, even though 50% of that amount is $1,000, the associate would only be paid the benefit maximum of $652.96 based on the New York State Average Weekly Wage. 5
The new Paid Family Leave law will be funded by associate payroll deductions. The contribution will be equal 0.126% of an associate’s average weekly wage with a maximum contribution based on the New York Average Weekly Wage, just like the maximum benefit. For example, if an associate’s average weekly wage is $1,000, the payroll deduction would be equal 0.126% of that $1,000 or $1.26. If an associate’s average weekly wage is $2,000, then the contribution would be $1.65, the maximum contribution, which is 0.126% of the New York Average Weekly Wage of $1,305.92. 6
As you learned before, associates can use Paid Family Leave to care for a close relative with a serious condition. Close relatives include Spouse, Partner, Children, Parents, Parents ‐ in ‐ law, Grandparents, and Grandchildren. Serious health conditions include illnesses, injuries, impairments, both physical and mental involving inpatient care in a hospital, hospice, or residential health care facility or continued treatment or supervision by a health care provider. 7
Paid Family Leave can be used for bonding after birth, but not for prenatal conditions. Short ‐ term disability should be used by associates to take care of their own health condition. Paid Family Leave can be used during the first 12 months following the birth, adoption, or foster placement of a child. 8
PFL is available for families eligible for time off under the military provisions in the federal Family Medical Leave Act when a member of the associate’s family is on active duty or has been notified of an impending call or order of active duty. PFL cannot be used for the associate’s own disability or qualifying military event. It may only be taken to care for a: Spouse - Domestic partner - Child - Parent - 9
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Here we have outlined the differences between the unpaid Family Medical Leave Act and this new New York Paid Leave law. 11
For newly hired associates, they will be eligible for the Paid Family Leave benefits after they have been employed for 26 calendar weeks. For part time or seasonal associates, they will be eligible after 175 DAYS, not restricted to a certain timeframe – is only related to the number of days. Associates may file a waiver to opt out of benefits and contributions if: They work a regular schedule of 20 or more hours per week but will not work 26 calendar weeks (for example temps) They work a regular schedule of less than 20 hours per week but will not work 175 days of employment in a 52 ‐ week period. 12
If associates can know ahead of time they will need a Paid Family Leave, for instance a birth, planned medical treatment, or other known military exigency, then they should provide at least 30 days notice to their manager. If a 30 day notice is not an option, or if the actual dates for the leave change or are extended, associates notify their managers as soon as possible. This includes the need for intermittent leave as well. 13
PFL is not optional for most associates. The exception is if the associate is in a job that will not allow the associate to attain the 26 continuous weeks or 175 days needed to qualify for leave (for example a temporary worker). For example: Although a newly hired associate is not presently eligible to file a claim, the associate is expected to be eligible (is expected to work 26 weeks if the associate is not a temp). A full ‐ time associate would not be eligible to file a waiver. Waivers will be accepted, but should not be faxed until January 1, 2108. They will need to be submitted by 3 p.m. the Friday before payroll ends to be effective next payroll. Waivers will be revoked automatically if an associate’s claim is approved or if the associate’s schedule indicates they may become eligible. Associates may also voluntarily revoke their waiver by completing and signing a revocation form, which will be faxed to same location as waivers. The Store should retain the waiver for duration of the associate’s employment in the associate’s personnel file (not the medical file). 14
If a waiver is requested, you will need to provide the associate a waiver form. The store manager or representative will need to certify the associate’s expected work schedule. If the associate ends up working such a schedule as to become eligible for Family Paid Leave, the waiver will be automatically revoked and the associate will be responsible for paying back contributions from the beginning of the plan year or the associate’s hire date, whichever is more recent. 15
The Waiver process includes three main steps. First, a waiver request form will be provided to the associate to be completed. Second, the Store Manager or representative will certify the associate’s expected schedule and fax the waiver request to People Services Finally, the waiver will be implemented and the associate will NOT pay the Paid Family Leave contributions The associate may revoke a waiver at any time and the company may also revoke a waiver if the associate files a Paid Family Leave claim or is no longer eligible for the waiver. 16
You can see here, we have highlighted how the payroll deduction will show an associates’ paychecks. 17
There are several resources available for you on the WIRE to help you learn, understand, and manage these new policy and guidelines. 18
Thank you again for taking the time to learn about his new law and paid time off policy. We appreciate you and all you do to support HR and your associates. 19
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